The Group’s Adjusted EBITDA amounted to €834 million (+14%), the highest level on record, mainly due to improved performance at all refineries and
sustainably high refining availability, while Adjusted Net Income amounted to €372 million, recording a 40% increase.

The strong operating performance at the Group’s refineries, which benefited, among other things, from opportunities in the Med crude oil pricing structure, the optimization of the crude slate and the operational optimization of all refinery units, leading to over-performance vs benchmark margins, offsetting the impact of the unplanned shutdown of the hydrogen production unit at the Elefsina refinery recording total production for the 2017 at 15 million tons (+ 1%) and total sales at 16.1 million tons (+ 4%).

All Group activities recorded satisfactory performance, with Petrochemicals maintaining profitability at high levels, reporting EBITDA of €95 million despite the decline in international polypropylene margins.

The Group's fuels marketing business in Greece (BP and EKO) continued to increase their sales and market share, with profitability 6%.

The increased demand for a number of products and markets, as well as higher retail sales led to improved overall sales volumes for most of the Group's international subsidiaries with corresponding increased profitability for International Marketing.

The recovery in international crude oil prices led to inventory valuation gains of €59 million, giving significant impetus to the published results, with EBITDA at €851 million and Net Income at €384 million, culminating in the highest performance in the Group’s history.

Key figures for 2017:

€ m

2017

2016

Turnover

7,995

6,613

Adjusted EBITDA

834

731

Inventory Effect

(59)

(102)

EBITDA

851

841

Adjusted Net Income

372

265

Net Income

384

329

Capital Employed

4,173

3,903

Net Debt

1,800

1,759

Gearing Ratio

43%

45%

€834m

Adjusted EBITDA (+14%)

€372m

Adjusted Net Income (+40%)

During 2017, the Group successfully implemented its financial strategy, aiming at balance sheet improvement and financial cost reduction.

Liquidity & cash flows

In July 2017, it raised €79 million in new capital (with a yield of 3.33%) through a retap of existing notes amounting to €375 million via a five-year bond maturing in October 2021 with a 4.875% coupon.

In 2017, Net Finance costs amounted to €165m, the lowest levels in the last 5 years, following the refinancing of bonds and bank loans, and the reduction of Gross Debt by €600m over the last two years. Furthermore, the refinancing of loans maturing in 2018 is in progress, with a significant positive impact on the average cost and duration of debt, as well as improved risk management.

2017 operating cash flows (Adjusted EBITDA – CAPEX) amounted to €625m, recording a small increase vs FY16, despite higher capital expenditure (€209m), due to heavier refinery maintenance and competitiveness improvement projects. Net Debt came in at €1.8bln, at similar levels with the previous quarters, with the leverage ratio at 43%.